Nine in 10 UK financial advisers would never recommend crypto or meme stocks
More than nine in ten independent financial advisers (IFAs) in Britain would never recommend cryptocurrencies or so-called meme stocks to their clients, a poll showed today.
Digital coins and meme stocks have soared in popularity as stay-at-home rules during the pandemic triggered an investment surge by non-professionals.
Some 93 per cent of IFAs would never recommend investing in crypto, while 95 per cent would not do so for meme stocks, according to the Opinium poll.
Over nine in ten IFAs would be concerned if a client said they were investing in either type of asset.
Still, a third of IFAs have seen increased interest in crypto from clients this year, with 14 per cent reporting more curiosity in meme stocks.
Bitcoin, the biggest digital coin, has slumped around 40 per cent since hitting an all-time high of nearly $65k in April but is still up 40 per cent this year.
Smaller cryptocurrencies have been similarly volatile, sparking warnings from central banks that investors could lose their money.
Professional and retail investors have embraced crypto this year, seeing the sector as a hedge against inflation and a future payment method.
Retail traders have put as much money into meme stocks over the past fortnight as they did at the peak of the GameStop rally in January, according to analysts at Vanda Research.